PRO BANKRUPTCY FTX Agrees to Sell Back Stake in Crypto Startup Mysten for $95 Million Bankrupt crypto exchange had paid roughly $101 million in August for preferred shares in startup founded by former Meta executives As part of the deal, FTX and Mysten have agreed to release claims against each other. PHOTO: OMAR MARQUES/ZUMA PRESS By Becky Yerak Updated March 23, 2023 1:00 pm ET SAVE PRINT TEXT Bankrupt cryptocurrency exchange FTX Trading Ltd. said it has reached a deal to sell preferred shares in Mysten Labs Inc. back to the crypto startup founded by former Meta Platforms Inc. executives for roughly $95 million. The proposed deal, disclosed Thursday in the U.S. Bankruptcy Court in Wilmington, Del., is subject to higher bids and court approval. ON THE DOCKET FTX Trading Ltd. CASE OVERVIEW DEBTOR’S REPRESENTATIVES KEY FILINGS As part of the deal, FTX and Mysten have agreed to release claims against each other, a court filing showed. FTX Ventures Ltd., the venture-capital unit of the bankrupt company, had bought the Mysten preferred shares for roughly $101 million in August in a funding round that raised roughly $300 million, valuing Mysten at more than $2 billion. FTX Ventures had led an investment consortium that also included Apollo Global Management Inc., Franklin Resources Inc. and Lightspeed Management Co. Creditors are fighting over assets held by FTX and its affiliates after the crypto company filed for bankruptcy in November. FTX, co-founded by Sam Bankman-Fried, regularly invested in various asset classes, including private and public companies, as well as in investment funds and token platforms. NEWSLETTER SIGN-UP WSJ Pro Bankruptcy Bankruptcy news, analysis and insights from WSJ's global team of reporters and editors. Federal prosecutors have alleged Mr. Bankman-Fried stole billions of dollars of FTX customer funds and misled investors and lenders. He has pleaded not guilty to charges related to securities and commodities fraud, campaign-finance violations and other allegations. On Wednesday, the new management team steering FTX through bankruptcy said it reached a settlement to recover more than $400 million with Modulo Capital, a Bahamas-based trading firm backed by Alameda Research, a crypto trader closely tied to FTX. Alameda had invested $450 million last year in Modulo, according to court papers filed Wednesday. Modulo agreed to return $404 million and waive $56 million in claims against FTX. Write to Becky Yerak at becky.yerak@wsj.com